# 5. Understanding reorganization in bankruptcy Chapter 11 of the Bankruptcy Act has several features that can...

###### Question:

5. Understanding reorganization in bankruptcy Chapter 11 of the Bankruptcy Act has several features that can help a firm that is in financial distress. The debtor is to borrow funds for short-term liquidity after it files for bankruptcy under Chapter 11. allowed Filing for bank Chapter 11 requires the debtor to submit a reorganization plan to the bankruptcy court. The court's responsibility is to scrutinize the not allowed of reorganization. The court checks if the plan is fair and feasible.

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